Pakistan bets big on crypto: Here's why the rush is raising concerns

In December 2025, Pakistan allowed global exchanges Binance and HTX to receive preliminary approvals as the government accelerates crypto adoption

Pakistan is rapidly expanding its footprint in the cryptocurrency space by welcoming global crypto exchanges and exploring ways to link digital assets with government instruments, a move that has raised concerns about fresh risks to the country’s already fragile economy, Nikkei Asia reported.

 

The push comes amid growing domestic interest in cryptocurrencies. According to the report, around 17.5 million Pakistanis together hold nearly $5 billion worth of virtual assets on crypto platforms.

What is Pakistan doing?

Pakistan took several steps to promote crypto adoption last year which, as many observers said, was to please the Donald Trump-led US government.

 

In December 2025, the country allowed global exchanges Binance and HTX to receive preliminary approvals. These approvals were issued by the Pakistan Virtual Assets Regulatory Authority (PVARA), enabling the exchanges to register locally, set up subsidiaries and begin preparations for full operating licences.

 

In parallel, Pakistan’s finance ministry signed a memorandum of understanding with Binance to explore tokenising up to $2 billion worth of government-owned assets. These include sovereign bonds, treasury bills and commodity reserves, with the aim of improving liquidity and attracting global investors.

 

The developments followed the establishment of the Pakistan Crypto Council earlier in the year to design a regulatory framework for digital assets. Binance founder Zhao Changpeng was appointed as a strategic adviser to the council in April.

Why is Pakistan’s crypto rush raising concerns?

Concerns persist that the government is moving too quickly without adequate safeguards. A Pakistani official told Nikkei Asia, “We are moving way too quickly on the cryptocurrency front, and this poses risks for our fragile economy.” The official added that the pace of decisions has created confusion even within government departments.

 

According to the report, licences for crypto exchanges are close to being granted even though Pakistan’s legal and regulatory framework for virtual assets is still incomplete.

 

Experts have also flagged a lack of transparency. Some believe crypto initiatives are being rolled out in a non-transparent manner, with limited clarity on rules, oversight and fiscal implications. One expert quoted in the report said the information being shared so far is “essentially all vibes”.

How could this impact Pakistan?

“Tokenising government assets could help Pakistan raise funds and attract foreign investors,” Omer Azhar, a London-based financial analyst, told Nikkei Asia. He said the move could widen the investor base and improve liquidity.

 

However, Azhar cautioned that crypto assets are highly volatile. “If tokenised assets are widely held offshore or sit outside normal fiscal controls,” he said, this could complicate debt management, raise concerns among credit rating agencies and increase Pakistan’s borrowing costs over time.